Key Takeaways

• The IRS has 10 years to collect a tax debt.
• They only consider reasonable living expenses.
• Your current financial situation determines what you pay.

If You Can’t Afford to Pay

If you truly have no money left after living expenses, you may qualify for a Currently Not Collectible (CNC) status. This means you pay nothing as long as you re-certify every two years. If you remain in CNC for 10 years, your debt may expire.

If You Can Pay Something

• Installment Agreement – Spread out payments over time based on disposable income. Sometimes the IRS only collects part of the debt before the statute runs out.
• Offer in Compromise – Settle for less than you owe by paying a lump sum or structured short-term payments.

Why Acting Now Matters

IRS penalties range from 0.5% to 75% and compound daily. Ignoring your tax debt can lead to wage garnishment, bank levies, or asset seizures.

Next Step

Stop IRS penalties from piling up. Schedule your free consultation today and let us help reduce or eliminate your tax debt.